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Stock Award Plans and Stock-Based Compensation
 3 Months Ended
Mar. 31, 2026
Stock Award Plans and Stock-Based Compensation [Abstract]  
Stock Award Plans and Stock-Based Compensation

Note 10 - Stock Award Plans and Stock-Based Compensation

 

Legacy XTI adopted the 2017 Employee and Consultant Stock Ownership Plan, which was assumed by the Company in connection with the XTI Merger. The plan permits grants of stock options and other equity awards to employees, directors and consultants. As of March 31, 2026, no shares remain available for future issuance under the 2017 Plan.

  

The Company’s 2018 Equity Incentive Plan, as amended and restated in August 2025, authorizes the grant of incentive stock options, nonqualified stock options, restricted stock, RSUs and other equity-based awards to employees, officers, directors and consultants. The 2018 Plan permits the Board to delegate limited grant authority to designated officers. Options generally vest over periods ranging from immediate to four years and have contractual terms of up to ten years.

 

As of March 31, 2026, there are no unvested Restricted Stock or Restricted Stock Units outstanding under the 2018 Plan.

  

The aggregate number of shares that may be awarded under the 2018 Plan as of March 31, 2026 was 80,105,687. As of March 31, 2026, 61,885,946 shares of common stock were available for future grant under the 2018 Plan, of which 57,209,296 shares are registered.

 

See below for a summary of the stock options granted under the 2011, 2017 and 2018 plans:

 

       Weighted   Weighted   Aggregate 
       Average   Average   Intrinsic 
   Number of   Exercise   Remaining   Value 
   Options   Price   Life (Years)   (in millions) 
Outstanding at January 1, 2026   15,941,550   $2.80    9.8   $
—
 
Granted   2,709,865   $1.66           
Forfeitures   (430,133)  $16.21           
Outstanding at March 31, 2026   18,221,282   $2.31    9.5   $5.7 
Exercisable at March 31, 2026   8,930,436   $2.62    9.2   $2.4 

During the three months ended March 31, 2026, the Company granted 2,709,865 stock options under the 2018 Plan to employees, directors, and other service providers with exercise prices ranging from $1.43 to $1.92 per share.

 

The following assumptions were used in estimating the fair values of options awarded during the three months ended March 31, 2026:

 

   Three Months
Ended
March 31,
2026
Fair value of common stock  $1.43 - $1.92
Exercise price  $1.43 - $1.92
Expected term  5.0 – 5.8 years
Volatility  134.52% - 149.33%
Risk-free interest rate  3.51% - 3.95%
Dividend yield 
—%

  

Stock-based Compensation Expense

 

Stock-based compensation charges for the periods indicated below (in thousands) are as follows:

 

   Three Months Ended
March 31,		 
   2026   2025 
Research and development  $205   $162 
Sales and marketing   382    16 
General and administrative   4,260    277 
Total  $4,847   $455 

 

As of March 31, 2026, the total unrecognized compensation expense related to unvested awards was approximately $13.9 million, which the Company expects to recognize over an estimated weighted average period of 1.0 years.